Presentation of key findings from the OECD EUIPO report "Trade in Counterfeit Pharmaceutical Products". For further details see https://oe.cd/pharmatrade

1. Trade in counterfeit pharmaceutical products
OECD / EUIPO

2. OECD – EUIPO evidence
Factual, neutral, objective
Deep dives into mechanics of trade in fakes

3. Findings so far:
• Scale of illicit trade in fakes is massive.
• Fake goods originate from virtually all economies
on all continents.
• Modern logistical solutions are misused: Free
Trade Zones, small parcels, etc.
• Virtually every trademark-protected good can be
faked.
• Effects are damaging: lost jobs, lost profits,
foregone taxes

4. Question?
How about fake pharmaceuticals?
• What types of medicines are targeted?
• What is the scale? Trade routes?
• What are the modes of operation by
criminals? Mapping of key trade routes.
• How about health risks?

5. Data
Main dataset: Customs Data
Detailed descriptions of seizures of fake medicines (globally).
From: Customs administrations (WCO, DG Taxud of the EC, US DHS CBP).
Additional dataset: Other enforcement data
Cases of fraudulent manufacture, mislabeling of drugs and fraudulent
packaging.
From: Enforcement actions carried out by all kinds of enforcement
agencies, such as police, health inspection service, customs, etc.

6. Findings
Markets for fake pharmaceuticals are very
attractive for criminals:
• high profit margins
• low risks of detection and prosecution,
• weak penalties,
• ease of consumer deception.

7. Magnitude
• Between 2014 and 2016 pharmaceuticals
were the
10th most counterfeited type of product in international trade.
• In 2016, international trade in
counterfeit pharmaceuticals reached USD 4.4 billion
this does not include fake medicines manufactured and consumed
domestically.

8. Fake medicines…
Over the period 2014-2016,
seized counterfeits included medicaments for various
kinds of diseases, including:
malaria, HIV/AIDS and cancer.
A review of the customs data shows that antibiotics,
lifestyle drugs and painkillers were the most targeted by
counterfeiters in international trade.

9. Global scale
• The scale of trade in fake medicines is global.
Trade routes are complex, and region / product
specific.
• India and China are the primary producers of fake
medicines. The United Arab Emirates, Singapore and
Hong Kong (China) are the key transit economies.
• Main targets: African countries, Europe and the
United States.

10. Misuse of modern solutions
Some Free Trade Zones – as points of
transit, distribution and repackaging.
Container maritime transport (African
countries)

11. Misuse of modern solutions
Growing role of the internet: easy point of entry
into even the best regulated markets.
Great extent of misuse of small parcels (postal
and express), especially to Europe and the US.

12. Many areas of negative effects
Health and safety,
including costs of treating patients
who have suffered adverse health consequences
as a result of consuming counterfeit medicines.
Environmental pollution
Loss of sales and damage to the reputations of legitimate
producers.
Additional costs and lost tex revenues to governments and
economies.

13. http://euipo.europa.eu http://oe.cd/pharmatrade
Nathan.Wajsman@Euipo.Europa.eu Piotr.Stryszowski@oecd.org